Argie Province Gets Single B

Argie Province Gets Single B

July 26, 2013

Following the government of Entre Rios’ approval to issue bonds, Moody's has assigned a B3 rating to the northern Argentine province, the agency says. The province approved last month a plan to raise up to ARP900m ($164m), or the equivalent in other currencies, at up to five years’ maturity. No specific plans have been announced. The province was also rated Baa2 on a national scale. Moody’s notes low and declining debt levels, as well as a track record of tight albeit stable operating surpluses. “The province’s debt profile is weakening because a larger proportion of outstanding debt is concentrated in shorter maturities. This will exert additional pressures in Entre Rios´ operating results,” the agency says. The outlook is negative, following the agency’s negative outlook on the sovereign.

Following the government of Entre Rios’ approval to issue bonds, Moody's has assigned a B3 rating to the northern Argentine province, the agency says. The province approved last month a plan to raise up to ARP900m ($164m), or the equivalent in other currencies, at up to five years’ maturity. No specific plans have been announced. The province was also rated Baa2 on a national scale. Moody’s notes low and declining debt levels, as well as a track record of tight albeit stable operating surpluses.